Daimler says China agreed to adjust pace of electric car quotas

German automaker Daimler and its Chinese partner BAIC Group have signed a new framework agreement for the production of electric vehicles.

Both these investments are expected to pave the way for next generation new energy vehicles, particularly electric vehicles.

In a statement, Daimler said that these upgrades and improvements will allow it to produce New Energy Vehicles locally.

China has agreed to delay and soften planned electric vehicle quotas in response to complaints from German carmakers who said the rules would discriminate against them in their largest market, Handelsblatt reported on Friday.

Daimler and its Chinese joint venture partner BAIC Motor Corporation agreed to upgrade the Mercedes-Benz factory in Beijing to make electric cars, the German carmaker said on Thursday.

BAIC Group chairman Xu Heyi said: "As outstanding representatives of the Chinese and German automotive industries, BAIC and Daimler have for years worked hand in hand with remarkable success". "This year marks the 12th year of our close partnership with BAIC, and we have deepened our Sino-German collaboration by continuously expanding into new business areas". Today's agreement is an important step by both sides towards the future of New Energy Vehicles.

BJEV was established in 2009 by the BAIC Group and other shareholders as a development platform for New Energy Vehicles. Daimler too has rich experience in New Energy Vehicles, having over the years accumulated advanced technical expertise.

The concession followed an auto industry lobbying effort before this week's Germany-China summit. "China today is already the world's largest market for NEVs, and Daimler is committed to contributing to the further development of electric mobility in this country".